Thought Leadership
The chip company Nvidia estimates the lost business due to the US government’s tightened export restrictions at 15 billion dollars.
This loss of sales comes in addition to the already reported write-downs of 5.5 billion dollars for inventories, said Nvidia CEO Jensen Huang in the podcast “Stratechery”.
He also said that the export hurdles would not prevent China from developing artificial intelligence. However, Huang warned that the “unintended consequence” of US policy was the creation of an isolated AI industry in the country, which would later compete with the US industry worldwide.
Slimmed-down Nvidia chips also banned for China
Even under the previous President Joe Biden, the USA created hurdles for the sale of the most modern high-performance chips to China. As a result, Nvidia was only able to supply Chinese companies with a slower version called H20. However, even these chip systems have been subject to export restrictions since mid-April due to the trade policy of Biden’s successor Donald Trump.
Anyone who thought that stopping the H20 chips would take away China’s ability to develop artificial intelligence was “deeply uninformed”, said Huang. Nvidia’s AI chips could not be technically slimmed down any further than the H20 version.
Chips from Nvidia have become the key technology for the booming artificial intelligence business. Chinese AI developers cannot ignore them either.
dpa
